Advocacy

Summary of Advocacy July 2020 - June 2021

This is a brief summary and update of ADVOCACY and Industry Representation matters and issues MGATMA is currently addressing at Federal and State levels on behalf all members.

Federal Matters

1. Frederick O’Connell MGATMA Industry Scholarship
2. Timber supply shortages &
3. Home Builders Grant extension
4. Industrial Relations
   1. Annual Wage Review 2021
   2. Permanent Part Time flexibility
   3. Wage Theft
   4. Casual Employee definition
   5. Sexual Harassment
   6. Junior wage rates
   7. Domestic Family Violence Leave
   8. FWC Loaded Rates project
5. Temporary Visa – Covid-19 408 – Hospitality and Tourism only
6. Least Cost Routing
7. ACCC - Competition matters

State Matters

1. State Covid-19 Business Economic Recovery Committees
2. Timber supply shortages
   • Banning of logging hardwood forests - Victoria
3. Sustainable Timber & Hardware – Waste Management
4. Planning, zoning and development
5. Trading Hours matters
6. Debilitating Energy Costs
7. Payroll tax
8. Small Business Advisory Councils

Federal matters

MGA TMA is currently engaging on an ongoing basis with Federal Ministers and Shadow Ministers about the following issues and matters

Covid-19 – Coronavirus Pandemic

• Australians have been plagued by lockdowns, shutdowns and movement restrictions around Australia - MGA TMA is a member of several Federal Government forums,
• Department of Home Affairs Economic Recovery Task Force / Food Security Group
• National Treasury Forums - re JobKeeper, JobSeeker, JobMaker, cash flow boosts and rent relief, as well as
• Engagement with FWC, ATO, Fair Work Ombudsman, ACCC, Human Rights Commission, Small Business and Family Enterprise Ombudsman and Covid-19 Business recovery Commissioner – Nev Power.

Covid-19 - Mental Health for Family and Private businesses – Advocated the Treasurer for additional funding support for MH programs - over $2b set aside

1. Frederick OÇonnell MGATMA Industry Scholarship

• MGATMA is very proud to be the custodian of the Timber and Hardware Industry Frederick O’Connell Scholarship programme.
• This scholarship programme is open to all MGATMA members, their families and their staff and provides the opportunity by way of successful application, to be financially assisted in any form of education, professional development or training.
• This past financial year MGATMA administered a fund pool of $37k (LY $54K) which was split between 20 successful applicants.

2. Timber Supply Shortages & Home Builders Grant extension to March 2022

• In the midst of the National Covid-19 lockdown in mid 2020 there was a great fear the building industry would collapse.
• MGATMA together with other industry building and construction industry associations advocated for Federal and State Government incentives to be introduced to stimulate the home renovation and building market.
• The Federal $25k Home builders Grant was introduced and would expire on 31^st March 2021
• Since the introduction of the Federal Government Covid – 19 stimulous Home Builders grant, coupled with a world shortage of timber, building grade timber has been in extremely short supply.
• The Home Builders Grant was oversubscribed with more than 100,000 applications.
• This has caused much angst with MGATMA members - therefore, MGATMA, together with other Industry Associations, developed and lodged a submission comprising a thorough timber and building industry review of the current timber resource and skills shortages occurring.
• The pleasing result is the Federal Minister for Housing, Michael Sukkar announced a 12 month extension of the Home Builders grant to March 2022 to stop the panic and smooth out the demand and supply issues.

3. Industrial Relations

1. The FWC Annual Wage Review Panel – as at 16^th June 2021 the FWC handed down its decision to award a 2.5% wage increase. This increase will be delayed for the General Retail Industry Award until 1^st September 2021.

After a substantive survey of members MGA’s submission recommended the following;

• MGA TMA sought a zero / nil increase or a small, delayed increase. The arguments for this recommendation centred around the need for the economy to recover from the effects of Covid19.
• There will be a .5% superannuation guaranteed contribution from 9.5% to 10% from 1^st July 2021.
• The ACTU sought a 3.5% increase to all awards.
• The past 4 years has seen a 11.55% increase in wages - the last increase of 1.75% was on 1^st February 2021. The newly announced 2.5% increase plus the past 4 years of increases = 14% plus .5% SCG increase to (10%) = Total increase = 14.55%

2. Permanent Part time employment and flexibility - WIP
   • MGA TMA and ACTU (SDA & AWU) jointly applied for a schedule to be inserted into the Award to allow PPT flexibility. Justice Iain Ross from the FWC has determined the GRA will be varied – (not a schedule).
   • Employers will be able to offer additional hours of work to a part time employee and will not pay for the additional hours of work at overtime rates. (This was included in the Omnibus Bill but did not get through)
3. Wage theft
   • Attorney General Christian Porters Working Group Recommendations to criminalise Wage Theft in the Omnibus Bill did not go ahead. 
4. Casual Employees – Definition - WIP
   • The definition of a Casual Employee will allay any member fears of having a casual employee “double dipping” by paying annual leave for consistent and systematic hours of work.
   • There are new rules surrounding the requirement to provide an opportunity to a casual employee to become permanent and this must be completed by mid-September 2021. MGA is currently preparing an information sheet for members’ guidance on this issue.
5. Sexual harassment at work - WIP
   • Has resulted in the proposed inclusion of an offence in the Fair work Act that provides for termination of employment on the grounds of sexual harassment. Complaints were previously made under the Human Rights Act.
   • Members are being encouraged to ensure that they have their policy on sexual harassment available to all employees and the need to conduct training on an annual basis. 
6. Junior wage rates removed
   • Junior wage rates were removed by the Fair Work Commission from the General Retail Award from Level 4 and upwards as from 1^st February 2021.
7. Domestic Violence Leave - WIP
   • Fair Work has commenced a review of domestic violence leave in Awards. It is proposed that consideration be given to payment for domestic violence leave and the adequacy of unpaid domestic violence leave currently.
   • The enquiry is expected to be heard later this year.
   • MGA TMA has opposed this proposal offering that support for DVL should be forthcoming from the Federal Government and not employers
8. FWC “Loaded rates” - WIP
   • MGA TMA together with the FWC is working on a much simplified loaded rates model to help smaller businesses comply with onerous Award compliance and assist them to  employ more staff simply. MGA is modelling one loaded rate for week days and weekends.
9. MGA TMA Consultation
   • A Senate Inquiry investigating the merit for the Fair Work (supporting Australia’s Jobs and Economic Recovery) Bill of proposed amendments to the Federal Parliament.

Other Matters

4. Temporary Visa – Covid-19 408 – Hospitality and Tourism only
   1. The unintended consequences of introducing this legislation will be the supplantation of the workforce from our members businesses to hospitality and tourism sectors.
   2. Temp Visa holders may work a maximum of 20 hours per week.
   3. The Covid 19 408 Visa will allow Temp Visa holders to extend their visas by 12 months and work in excess of 20 hours per week.
   4. MGA TMA is engaging with Minister for Immigration Alex Hawke and Minister for Small Business Stuart Robert to allow this policy to be extended across all industries including our own.
5. Least Cost Routing – Reduce Merchant Payment Fees
   1. MGA is engaging with Government, RBA and eftpos to not risk losing dual network cards (eftpos and global card) and encouraging the 4 banks to significantly reduce increasing Merchant Payment Fee costs
   2. MGA formed the Fair Merchant Payment fees Alliance with other employer organisations.
6. ACCC Matters currently being addressed
   1. Member of ACCC Small Business and Franchise Consultative Council
   2. Unsustainable Merchant Payment Fees & Least Cost Routing for members - WIP
   3. Investigate Employsure - misleading marketing, promotional & contract behaviours
7. Unfair Contract Terms
   1. further strengthen contract terms that better protect family and private businesses – lift the contract value threshold to $10m.
8. Company Tax reductions
   1. MGA TMA is supporting the fast tracking of reductions to 25% for small businesses with $50m or less in sales – currently 26%
9. Small Business Advisory Councils
   1. NSW – MGA TMA a member of the Small Business Commissioner Small Business Round Table
   2. MGA TMA is a member of the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO), Bruce Billson working groups.
   3. MGA TMA is a Director of the Council of Small Business Organisations of Australia (COSBOA)
   4. Qld  – MGA TMA is a member of the Small Business Commissioner – Maree Adshead - Small Business Round Table
10. Circular Economy - Sustainability – Waste Management Solutions
    1. MGA TMA’s historical Joint Venture with Corporate Partner, Aussie Energy to form a “Social Enterprise” company, Australian Circular economy Solutions Pty Ltd. (ACES) has been launched.
    2. We focus on providing environmental and socially responsible management solutions to to help businesses reduce the cost of waste pickups and the negative consequences associated with waste (saw dust, chips, offcuts, plastic and cardboard) being sent to landfills, reducing annual quantities of CO2 equivalent gasses into the atmosphere.
    3. Timber & Hardware businesses generate an enormous amount of waste….tonnes & tonnes and its costly to get rid of!
    4. Organic waste
       1. Timber off cuts, wood chips, saw dust, wood shavings.
    5. Non-Organic waste
       1. Plastic soft and hard (pallet shrink wrapping), cardboard and  Styrofoam, etc..
       2. ACES will be developing a unique Circular Economy Solutions programme for members via a Sustainable Timber & Hardware business programme.

State Issues and matters

1. State Covid-19 Business Economic Recovery Committees
2. Timber supply shortages
   • Banning of logging hardwood forests - Victoria
3. Sustainable Timber & Hardware – Waste Management
4. Planning, zoning and development
5. Trading Hours matters
6. Debilitating Energy Costs
7. Payroll tax
8. Small Business Advisory Councils

1. State Covid-19 Business Recovery Committees

MGA TMA is a member of a number of State and Territory Covid-19 Business Economic Recovery Committees

• Meetings held weekly and fortnightly
• Many issues and opportunities discussed including removing of red tape for members to home deliver, rental relief schemes and assistance, payroll tax relief, return to business opening strategies, JobKeeper, Job Maker matters, Covid-19 work practises, restrictions and business information tools and industry training and development.

Qld Premier’s & Small Business Commissioner - Covid-19 Business Economic Recovery Committee

NSW Treasurer’s & Small Business Commissioner – Covid-19 Small Business Economic Stimulous Committee

Vic Small Business Minister & Small Business Commissioner – Small Business Recovery Committee

WA – Small Business Minister - Small Business Covid-19  Economic Recovery Group

2. Timber supply shortages

• MGATMA has actively engaged with forestry, wood products, building and construction industry stakeholders to discuss the severe shortage of structural timber.
• The timber shortage is being experienced globally. The very high demand for timber in the US has gone through the roof causing very high prices coupled with the dilemma of a shortage of containers
• The successful uptake of various State domestic renovation incentives, the Home Builder Grant has stimulated unprecedented demand from first home buyers.
  • IE. Of the 100,000 Home Builder Grants approved in Australia circa 10,000 applicants have come from SA.
• High demand is also fuelled by the staggering increase home renovations as the general population refrains from travelling and spends money on their homes.
• There is a huge shortage of componentry and engineered materials such as structural beams and LDL – essential for the building of homes particularly double storey.
• There is a fundamental timber market issue – demand outstripping supply - causing prices for timber to escalate at never before seen rates. Imported timber has increased at exorbitant rates – by 60-70% in some cases.
  1. Banning of logging hardwood forests – Victoria
  • MGATMA is addressing the serious Victorian Government Banning of Logging in Native Forests. It is unfortunate that the Labor party has sided with the Greens to stop any form of native forests logging.
  • This will close businesses, cause unemployment and severely affect the economic and social viability of regional towns where logging is taking place.

3. Circular Economy – Waste Management - Priority

MGA TMA has been strongly advocating the Federal and state governments for;

• Assistance to better support T & H members to embrace the principles of the Circular Economy with their waste management practices
• Currently waste disposal is a huge business cost for members and escalating
• MGA TMA is engaged with the Federal and State Environment Departments to help communicate opportunities within our industry sector to assist members reduce their waste costs and avoid landfill.
• MGA TMA is applying for various grants to assist members.

4. Planning, zoning and development matters are a major concern.

MGA TMA has been strongly advocating state governments for;

• Council consistency – require and follow state planning and development guidelines to give Family businesses the confidence to invest in their businesses and innovate
• Stop unfair crowding out of our members by the Chains – reducing consumer choice and stifling competition

5. Trading Hours issues

• WA – Christmas and New Year - MGA TMA will lodge a submission with WA Attorney General John Quigley – to maintain the status Quo for Christmas 2021 and the New Year 2022 – no change 2020/2021!
• Qld – 5 Year Trading Hours Moratorium – commenced August 2017. 1.3 years remain for MGA TMA and the Palaszczuk Government to seek a solution to “future proof” Qld independents.
• SA – Christmas and New Year Trading Hours – MGA TMA will advocate for NO changes to last year.

6. Energy Costs – being addressed with the relevant State Ministers and their departments at every opportunity. Each state has a different system and ownership structure for electricity generation and electricity retailing adding complexity, confusion and costs.
7. Payroll tax – This is a debilitating tax on employment – MGA continues to voice strong concerns that this tax is a handbrake on employment growth, particularly, as we emerge from the Pandemic.

Payroll tax relief or deferment was given by some state Governments during Covid-19 in 2020. States and territories raise $22B per in revenue from payroll Tax.

8. Small Business Advisory Councils

• Queensland – Debbie Smith, FWks Toowoomba - member of Qld Sml Bus Advisory Council
• NSW – MGA is a member of the Small Business Commissioner Small Business Round Table
• Victoria – MGA & Tony Ingpen, Supa IGA Mount Evelyn is a member of the statutory Small Business Advisory Council

MGA Board of Directors